Investor’s Alert (Beta Factor in Focus) – Intrepid Potash Inc (NYSE: IPI)

U.S. stocks showed strength on Thursday, building on the modest gains from Wednesday’s session.

The Dow Jones Industrial Average rose 196.99 points, or 0.80%, to close at 24,739.53. The Nasdaq was up 0.89% while the S&P 500 rose 0.94%.

Action Alerts PLUS holding Comcast Corp. shares rose 2% after the Financial Times reported that it may need to include a $2.5 billion “break fee” in any new bid for the media assets of Rupert Murdoch’s 21 Century Fox that are currently being offered to Walt Disney Co.

Tesla shares declined 0.60% following news that the U.S. National Transportation Safety Board will investigate the crash of a Tesla Model S that killed two teenagers, and injured a third, in Fort Lauderdale earlier this week. The NTSB said the probe will be focused on “emergency response in relation to the electric vehicle battery fire, including fire department activities and towing operations.”

Chevron and ExxonMobil edged higher, by 0.08% and 2%, respectively, thanks to a sustained surge in global crude prices. Israel and Iran traded rocket fire overnight near the Golan Heights on the Syrian border in some of the most intense fighting in the region in several years. The Israel Defense Forces said it intercepted several rockets fired from Syria, which it said were launched by the elite Quds Force division of the Iranian Revolutionary Guard.

White House Press Secretary Sarah Sanders told Fox News that the clashes were a “further demonstration that the Iranian regime cannot be trusted and another good reminder that the president made the right decision to get out of the Iran deal.” Russia’s Deputy Foreign Minister, Mikhail Bogdanov, told the TASS news agency that the Gulf situation was “very alarming. It causes concern. There should be work to de-escalate the tensions.” (Source: TheStreet)

Hot Stock Analysis: Intrepid Potash Inc (NYSE: IPI)

Investors rushed to trade on Intrepid Potash Inc (NYSE: IPI) Thursday, soon after a drastic change of 3.28% in the share price was observed and the stock become able to close its trade at $4.09. The stock becomes active when traders or investors changed hands with 2,814,484 shares contrast to the three-month volume average of 1.09M shares. The ratio between current volume and 3-month average value, also known as Relative volume was observed at 2.58, validating the stock’s In Play state.

Stock Technical’s & Performances to Explore:

Based on a recent bid, this stock (IPI) was trading at a distance of -20.12% from 52-week high and 101.48% away from its 52-week low price. We observed -5.98% rate of return for a stock for the last 5-trading days, which was maintained for the month at 6.79%. Likewise, the performance for the quarter was recorded as 23.94% and for the year was 78.60%. The comparison of these above mentioned historical values gives an idea to investor whether the stock is ready to shift trend (up to down or down to up) or how the stock has recovered the losses or shed gains during its historical phase. For example, if stock’s weekly and monthly performances are positive as compared to year and YTD performance percentage also seems to decrease in comparison to the previous year performance, then one can say that the stock is bouncing back and may able to gain more and more in near future and vice versa. Although stock’s historical performances are key to consider, don’t invest (or not invest) based solely on it. It’s just one measure of value. As a serious shareholder, you need to look at plentiful factors that can assist you determine whether any given stock is a good investment.

Simple Moving Averages (SMAs) in Focus:

Moving averages is one of the key indicator and the most powerful tool used by traders. A simple moving average is easy to calculate, which allows it to be employed fairly quickly and easily. A textbook definition of a moving average is an average price for a security using a specified time period. The simplest form of a moving average, appropriately known as a simple moving average (SMA), is calculated by taking the arithmetic mean of a given set of values. For example, to calculate a basic 10-day moving average you would add up the closing prices from the past 10 days and then divide the result by 10. If a trader wishes to see a 50-day average instead, the same type of calculation would be made, but it would include the prices over the past 50 days and the same process goes on for 200 days.

Do SMAs Signal a Trend Reversal?

Based on a recent bid, this stock (IPI) was trading at a distance of -4.24% from 20 days simple moving average, and its distance from 50 days simple moving average is 3.55% while it has a distance of 6.31% from the 200 days simple moving average. A moving average’s greatest strength is its ability to assist a trader identifies a current trend or spots a possible trend reversal. Moving averages can also identify a level of support or resistance for the security, or act as a simple entry or exit signal.

Stock’s Volatility Analysis:

Volatility is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. It generally deals with the amount of uncertainty or risk about the size of changes in a security’s value. It can either be calculated by means of the standard deviation or variance between returns from that same security or market index. The Rule of thumb is higher the volatility, the riskier the security. A higher volatility means that a security’s value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security’s value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

What about IPI Stock’s Volatility?

According to finviz data, IPI stock’s volatility for the week is measured at 4.99%, while for the month it is maintained at 6.29%.

An Eye on Beta Factor:

One gauge of the relative volatility of a specific stock to the market is its beta. A beta approximates the overall volatility of a security’s returns against the returns of a relevant benchmark (usually the S&P 500 is used). Presently, Beta factor for IPI stock stands at 0.84. A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market. Conversely, if an ETF’s beta is 0.65, it is theoretically 35% less volatile than the market. Therefore, the fund’s excess return is predictable to underperform the benchmark by 35% in up markets and outperform by 35% during down markets.

What Do Analysts’ Recommend?

Analysts mean recommendation for the stock is 3.40, (where 1 is Strong Buy and 5 is Strong Sell).

Disclaimer: Any news, report, research and analysis published on are only for information purposes. Stocks Pen (SP) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument, unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Stocks Pen; however, human error can exist.

David Rich

David Rich

I am David Rich and I focus on breaking news stories and ensuring we (“Stocks Pen”) offer timely reporting on some of the most recent stories released through market wires about “Basic Materials” Sector companies. I have formerly spent over 5 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for “Stocks Pen” specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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